Staffing 360 Solutions Inc (STAF)’s Fiscal Second Quarter 2015 Earnings Conference Call Transcript

Since this time last year, we have strengthened our management team and our board of directors. Not only has this improved our financial controls, reporting and compliance, it has also positioned us to up list to a senior exchange as soon as we meet all of the listings requirements. Obviously, we are very satisfied with the incredible growth over the past year and we believe that we are firmly on the path to achieving our stated objectives. You will hear about our pathway to profitability. We believe that our pathway to profitability is working and is delivering results. At this point I will hand the call over to Jeff for some clarity on the numbers. Jeff?

Jeff Mitchell – Chief Financial Officer

Thanks, Brendan and good morning to all you joining us on this call. As the CFO I’m going to dive right into the financial results and provide what I hope will be some interesting and useful commentary on what we’ve accomplished this quarter. Please be reminded that the company’s fiscal year end is May 31st so the second fiscal quarterly results we’re discussing today actually ended on November 30th of 2014.

We’re very pleased to report quarterly revenue of $33.9 million; this represents an increase of nearly $32 million over the prior year. Likewise the quarterly gross profit increased $6.1 million, an increase of $5.5 million. These significant increases and improvements in revenue and gross profit are a direct result of the acquisitions that were closed after November 30th of 2013.

The quarterly G&A expenses were $1.1 million, or approximately 2% of revenue, compared to $548,000 in the prior year. Salaries and wages ran $4.4 million or 12% of revenue compared to $446,000 in the prior year, which was 23%. The quarterly professional fees totaled $758,000 versus $615,000 for the prior year. It’s worthy to know that the SG&A and salary expenses have increased primarily to support the acquisitions and growth of the company over the past year. However, the professional fees increased largely to support ongoing capital raising, investor relations and closing costs associated with the acquisitions.